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5 Reasons Productivity is the Most Powerful Investment of Your Life

5 Reasons Productivity is the Most Powerful Investment of Your Life

If I said you only needed to do one thing, just one thing, in order to improve every aspect of your life, what do you think it’d be?

  • Be more empathetic?
  • Be more charitable?
  • Be happier with what you already have?

No, no, and once again, no.

Yeah, all those things can make your life better, but even they pale in comparison to the real answer.

Want to know what it is? Productivity.

Productivity can improve the entirety of your life

Yes, it’s important that we strive to be more happy. And to be more positive. And to be more empathetic.

But here’s where productivity takes the cake – it can create real, TANGIBLE opportunities in your life.

Think about it, you’ve probably had those days where you’re just on point. Everything that needs to be done is done, and you can officially stop worrying about everything at that point.

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You freed up your mind and you’re time is to yourself.

Now imagine a day where you focused on seeing the happiness or positive in life, but you didn’t finish all your work. How do you feel? Your probably conflicted because your frustrated and stressed from not finishing your tasks, yet you’re trying to remain positive.

See the problem?

Trying to see the positive is best done by creating positive things in your life, not forcing the perspective of it. But you need to create time for positivity, right?

But how do you create the time for happiness, positivity, empathy, and more?

By mastering productivity.

5 benefits of mastering productivity

Next time you find yourself thinking “what can I do to improve myself?”, you should definitely start with mastering productivity…

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…and I’ll give you five smarts reasons why.

1. It creates time for your happiness and passions

What makes more sense?

  1. Trying to have a happier outlook about life
  2. Creating the time for happy experiences in life, which you can then act on

If you don’t know the answer, it’s this – experiences trump outlook every time.

Why? Because it’s reality. It’s something that’s real and actually happened to you, and will always inspire joy in you whenever you remember it.

This is the power of free time, and you can only get it if you get all your work done when it needs to be done.

2. It teaches discipline (and how to apply it to your whole life)

Everything that’s worth doing in life requires some level of discipline, and you know what requires discipline?

Productivity.

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Not only that, productivity is something that we need to do daily, which means we all get some discipline out of it. And all we need to do is apply that discipline to other rewarding activities in our lives.

Sure, there are some people who do only enough to get by, so they really don’t have any of the disciplinary benefits that a practiced person has.

But even applying just average discipline is enough to reach other goals you have in life, and productivity can give you that.

3. It teaches you how to manage your time (which can be used for yourself and on loved ones)

No amount of positive thinking can get you more time for yourself and your loved ones.

But efficient working? That definitely can.

Productivity teaches you how to look at your work, then a clock, and say “I have (x) amount of time to complete this and this, but if I also do this then I can have some free time tomorrow.”

This means more personal and family time. This is something everybody wants, yet it seems to be a struggle for most. Yeah, some people truly don’t have any extra time despite what they do, but they are the exceptions.

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Me and you both know that a little more productivity in our lives can get us that precious extra time we deserve.

4. It creates real-life opportunity (which can’t be attained by “thinking positively)

Nothing is more rewarding than productivity. How so? Because in addition to the sense of accomplishment that comes with it, it can be aimed at tangible goals as well (i.e. money, promotions, a fitter body, better writing skills, etc.).

It’s said that focusing solely on these types of desires is a bad thing, which is true to a point. But if these things can improve your productivity, then they work perfectly fine as milestone goals. You know, as something to grease the wheels and keep you going. There’s nothing wrong with that, despite what people may say.

All that matters is that eventually you tie your productivity into a worthy goal, which can be better achieved from productive practice (even if that productivity was primarily fueled by earning money.

5. It’s the only way to achieve your vision of happiness

The ultimate reason for productivity is this:

Productivity – and it alone – is the only way to reach your ideal vision of life.

Why? Because real productivity is about consistent, persistent, and deliberately chosen actions, and those things can get you anywhere in life.

Over to you! Are there any other benefits to mastering productivity? What are they? Leave a comment below with your response because I’d love to hear it :)

Featured photo credit: Numbers and Finance/Ken Teegardin via secure.flickr.com

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Ericson Ay Mires

The productivity expert that treads the "dangerous" path of motivation.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

    Reference

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